Internal Revenue Code (Title 26 U.S.C.)
26 U.S.C. § 1378 (2024) — Taxable year of S corporation
General rule
For purposes of this subtitle, the taxable year of an S corporation shall be a permitted year.
Permitted year defined
For purposes of this section, the term "permitted year" means a taxable year which— (1) is a year ending December 31, or (2) is any other accounting period for which the corporation establishes a business purpose to the satisfaction of the Secretary. For purposes of paragraph (2), any deferral of income to shareholders shall not be treated as a business purpose.
Source: official text